Boeing will build at least eight F-15EX fighter jets for the Air Force at its St. Louis, Missouri production facility in a deal worth $1.2 billion, the company said late Monday. It will also remain part of an "indefinite delivery, indefinite quantity' contract with the Air Force that could eventually amount to around $23 billion.
'The F-15EX is the most advanced version of the F-15 ever built, due in large part to its digital backbone,' said Boeing's program manager Lori Schneider. 'Its unmatched range, price and best-in-class payload capacity make the F-15EX an attractive choice for the U.S. Air Force.'
Boeing shares were marked 1% lower in early trading Tuesday to change hands at $173.71 each, a move that would trim the stock's three-month gain to around 25.5%.
The Air Force deal helped offset concerns, first reported by the Wall Street Journal, that American Airlines Group (AAL) - Get Report is set to cancel around 17 orders for Boeing's troubled 737 MAX jet, which has yet to win FAA clearance to resume flights after being grounded by regulators last year in the wake of fatal crashes in Ethiopia and Indonesia.
Boeing resumed production of the 737 MAX in late May, while revealing plans to cut more than 12,000 jobs, as it awaits approval from the FAA, but demand for the troubled aircraft continue to slump.
Boeing's net orders for May were pegged at -9, including 14 cancellations of the grounded 737 MAX that took the year-to-date total to 295.
Software fixes to address the Maneuvering Characteristics Augmentation System, or MCAS, re-work were completed in May, following 360 hours of testing over more than 200 flights, Boeing reported earlier this spring.
Boeing is slated to publish its second quarter earnings on July 29, before the market opens, with investors looking for an adjusted core loss of $2.35 per share on revenues of $14.2 billion.